And how to be a qualified investor? What will be the qualifications to be a qualified investor? Does the government really want to protect investors or they do the tightening because they are envious and they are nit benefitting from it and somehow they want a share from people’s earnings from cryptocurrencies?  

Its highly likely to happen. ETH has demonstrated that it is the next big thing after BTC. Its still has highest No of ICOs and has great 2017. I see this happening and then it should fly off to $2000 plus in no time....

I am amazed at eth and appreciate enough to own a number of them. It's a bit down right now but it holds well in the down turns. I hear a lot of rumors of it being adopted by business. I like the active team behind it. Eth does have some risks but it's a solid project

That's the thing. Imagine, if they start doing that, how many people will lose their jobs? Half of Wall Street? They won't accept it, they'll call it a scam till the very last minute, I think. In the mean time, they will prepare their own answer - on the blockchain. But it will be their blockchain, on their terms.

Well anything is possible in the crypto world. ETH was indeed quite strong in the last 3 months.

That's an interesting point to use Ethereum smart contracts for IBO (Initial Bond Offering). This Bonds market looks huge, about $3.5 trillions worldwide. As it's mentioned in the article standardized smart bond contracts can become available soon, which will simply moon Ethereum CAP.
Great news, what else can I say.

Ethereum locking down the shadiness of Wall Street? Maybe. In an ideal world, but I doubt it's embraced anytime soon.

Things will improve, I believe. With the cash injection into eth, and a determination of the team behind Ethereum, I believe, the security issues will be sorted. Besides, literally more than a half of the cryptomarket runs on Ethereum - it's not that bad.

Because IPO's raise 10x or 100x more money?  And IPOs are for shares which give you equity - ownership - in business?  Unless the structure of ICO changes pretty fundamentally they are not going to be of serious interest to Wall Street.

What is the main function of investment banks?  Its putting the deal together, securing the funding from other banks and investors to pool together the bulk of the issue, along with underwriting.  This would still be needed in a system that run on Ethereum or other smart contract.  Smart contracts can automate issuance and increase access to funds for low capitalisation projects, but they wont replace those old networks of investors and lawyers.

And to the OP point, the regulations already exist!  That's why US (and some other) citizens are excluded from just about every ICO, as they are from many IPOs.  People have tried and succeeded to launch their dodgy fund raising before, some have failed, some have scammed, and rules and regulations exist.  Cryptocurrency isn't doing anything new, only changes how some things are done.